It is.no longer news that most schools in the country, had increased fees following economic hardship. With new term commencing right after the Christmas break, many parents have been caught in a fix on paying for their kids and wards school fees.
However, there are some who have been able to scale that hurdle having subscribed to education savings products provided by financial institutions in the country. Education savings accounts are financial tools designed to help families save for the cost of education.
These accounts are typically used to save for education expenses, as well as higher education costs. These accounts provide flexibility in terms of how the funds can be used. Money from can typically be used for a variety of educational expenses, including tuition, books, supplies, and in some cases, even room and board for higher education.
4Having a designated savings account for education encourages families to set aside money specifically for educational purposes. This helps in creating a disciplined approach to saving for future educational needs.
The account also enables parents to start saving for their child’s education early on, covering costs such as private school tuition or educational materials. Some banks allow customers to open special account for children from birth to enable them gradually save up for their education on either a weekly or monthly basis.
There are also accounts that have yearly maturity that matures around September when new session starts, while some are designed to mature at the beginning of new terms for those who pay fees on term basis.
Some banks even allow for special loans to be drawn by these accounts to augment the savings in the account if it is not enough to cater for the fees or educational materials. Education savings accounts are not only meant for primary or secondary schools.
